First of Long Island (FLIC)

The
First of Long Island Corporation (the Registrant or the Corporation), a
one-bank holding company, was incorporated on February 7, 1984 for the purpose
of providing financial services through its wholly-owned subsidiary, The First
National Bank of Long Island (the Bank).

The
Bank was organized in 1927 as a national banking association under the laws of
the United States of America and was known as The First National Bank of Glen
Head through June 30, 1978. The Bank has an Investment Management Division that
provides investment management, pension trust, personal trust, estate, and
custody services. The Bank organized a wholly-owned subsidiary, The First of
Long Island Agency, Inc. (the Agency), as a licensed insurance agency under
the laws of the State of New York. The Agency sells mutual funds and annuities
to customers of the Bank. Such products are made available through a third
party provider. The Bank has one other wholly-owned subsidiary, FNY Service
Corp., an investment company, which has one wholly-owned subsidiary, The First
of Long Island REIT, Inc., a real estate investment trust.

All
of the financial operations of the Corporation are considered to be aggregated
in one reportable operating segment. All revenues are attributed and all
long-lived assets are located in the United States.

The
Bank has historically served the financial needs of privately owned businesses,
professionals, consumers, public bodies, and other organizations primarily in
Nassau and Suffolk Counties, Long Island. However, the Bank has three
commercial banking branches in Manhattan and may open additional Manhattan
branches in the future.

The
principal business of the Bank has historically consisted of attracting
business and consumer checking, money market and savings deposits and investing
those funds in commercial and residential mortgage loans, commercial loans,
home equity loans, and investment securities. The Corporations loan portfolio
is currently primarily comprised of loans to borrowers in Nassau and Suffolk
Counties and its real estate loans are principally secured by properties
located in those Counties.

The
Banks investment securities portfolio is comprised of U.S. Treasury
securities, U.S. government agency securities (including pass-through
mortgage-backed securities), collateralized mortgage obligations, state and
municipal securities and corporate bonds. The Bank also regularly sells federal
funds on an overnight basis to a number of banking institutions.

The
Bank offers a variety of deposit products having a wide range of interest rates
and terms. The principal products include checking accounts, money market
accounts, savings accounts, escrow service and IOLA (interest on lawyer)
accounts, and time deposit accounts.

In
addition to its loan and deposit products, the Bank offers other services to
its customers including the following:



Account
Reconciliation Services



ATM Banking



Bank by Mail



Bill Payment
Using PC or Telephone Banking



Cash
Management Services



Collection
Services



Counter
Checks



Drive-Through
Banking



Gift Checks
and Personal Money Orders



Internet PC
Banking



Merchant
Credit Card Depository Services



Lock Box
Services



Night
Depository Services



Payroll
Services



Remote
Deposit



Safe Deposit
Boxes



Securities
Transactions



Signature
Guarantee Services



Telephone
Banking



Travelers
Checks



Trust and
Investment Management Services



U.S. Savings
Bonds



Wire
Transfers and Foreign Cables



Withholding
Tax Depository Services

The
Bank has a main office located in Glen Head, New York, nine other full service
offices (Greenvale, Huntington, Locust Valley, Merrick, Northport, Old
Brookville, Rockville Centre, Roslyn Heights, Woodbury), fourteen commercial
banking offices (Bohemia, Deer Park, two in Farmingdale, Garden City, Great
Neck, Hauppauge, Hicksville, three in Manhattan, Mineola, New Hyde Park, Valley
Stream), and two Select Service Banking Centers (Lake Success, Smithtown) which
serve the needs of both businesses and affluent consumers. The Banks newest
office is the Select Service Banking Center in Smithtown, New York, which was
opened in the fourth quarter of 2006. The Bank continues to evaluate potential
new branch sites both on Long Island and in Manhattan.

The
Banks revenues are derived principally from interest on loans, interest on
investment securities, service charges and fees on deposit accounts, and income
from trust and investment management services.

The
Bank did not commence, abandon, or significantly change any of its lines of
business during 2006.

1

The
Bank encounters substantial competition in its banking business from numerous
other banking corporations which have offices located in the communities served
by the Bank. Principal competitors are branches of larger banks, such as
Citibank, JPMorgan Chase, Bank of New York, North Fork Bank, and Commerce Bank,
various community banks on Long Island and in Manhattan, mortgage brokers,
brokerage firms and credit unions.

The First of Long Island Corporation (the Registrant or the Corporation),
a one-bank holding company, was incorporated on February 7, 1984 for the purpose of providing financial
services through its wholly-owned subsidiary, The First National Bank of Long Island (the Bank).

The Bank was organized in 1927 as a national banking
association under the laws of the United States of America and was known as The First National Bank
of Glen Head through June 30, 1978. The Bank has an Investment Management Division that provides
investment management, pension trust, personal trust, estate, and custody services. The Bank organized
a wholly-owned subsidiary, The First of Long Island Agency, Inc. (the Agency), as a licensed
insurance agency under the laws of the State of New York. The Agency sells mutual funds and annuities
to customers of the Bank. Such products are made available through a third party provider. The Bank
has one other wholly-owned subsidiary, FNY Service Corp., an investment company, which has one wholly-owned
subsidiary, The First of Long Island REIT, Inc., a real estate investment trust.

The Bank has historically served the financial needs
of privately owned businesses, professionals, consumers, public bodies, and other organizations primarily
in Nassau and Suffolk Counties, Long Island. However, the Bank opened three commercial banking branches
in Manhattan in 2003 and may open additional Manhattan branches in the future.

The principal business of the Bank has historically
consisted of attracting business and consumer checking, money market and savings deposits and investing
those funds in investment securities, commercial and residential mortgage loans, commercial loans,
and home equity loans and lines. The Corporations loan portfolio is currently primarily comprised
of loans to borrowers in Nassau and Suffolk Counties and its real estate loans are principally secured
by properties located in those Counties.

The Banks investment securities portfolio is
comprised of U.S. Treasury securities, U.S. government agency securities (including pass-through
mortgage-backed securities), collateralized mortgage obligations, state and municipal securities
and corporate bonds. The Bank also regularly sells federal funds on an overnight basis to a number
of banking institutions.

The Bank offers a variety of deposit products having
a wide range of interest rates and terms. The principal products include checking accounts, money
market accounts, savings accounts, escrow service and IOLA (interest on lawyer) accounts, and time
deposit accounts.

In addition to its loan and deposit products, the Bank
offers other services to its customers including the following:



Account Reconciliation Services



Night Depository Services



ATM Banking



Payroll Services



Bank by Mail



Safe Deposit Boxes



Bill Payment Using PC or Telephone Banking



Securities Transactions



Collection Services



Signature Guarantee Services



Counter Checks and Certified Checks



Telephone Banking



Drive-Through Banking



Travelers Checks



Gift Checks and Personal Money Orders



Trust and Investment Management Services



Internet PC Banking



U.S. Savings Bonds



Merchant Credit Card Depository Services



Wire Transfers and Foreign Cables



Lock Box Services



Withholding Tax Depository Services

The Bank has a main office located in Huntington, New
York, nine other full service offices on Long Island (Glen Head, Greenvale, Locust Valley, Merrick,
Northport, Old Brookville, Rockville Centre, Roslyn Heights, Woodbury), twelve commercial banking
offices on Long Island (Bohemia, Deer Park, two in Farmingdale, Garden City, Great Neck, Hauppauge,
Hicksville, Lake Success, Mineola, New Hyde Park, Valley Stream), and three commercial banking offices
in Manhattan. The Banks newest office is the full service office in Merrick, New York which
was opened in December 2005. The Bank continues to evaluate potential new branch sites both on Long
Island and in Manhattan.

The Banks revenues are derived principally from interest on loans, interest on investment securities,
service charges and fees on deposit accounts, and income from trust and investment management services.

The Bank did not commence, abandon, or significantly change any of its lines of business during 2005.

The Bank encounters substantial competition in its
banking business from numerous other banking corporations which have offices located in the communities
served by the Bank. Principal competitors are branches of larger banks, such as Citibank, JPMorgan
Chase, Bank of New York, North Fork Bank, and Commerce Bank, various community banks on Long Island
and in Manhattan, mortgage brokers, brokerage firms and credit unions.

The First of Long Island Corporation (the Registrant or the Corporation),
a one-bank holding Company, was incorporated on February 7, 1984 for the purpose of providing financial
services through its wholly-owned subsidiary, The First National Bank of Long Island (the Bank).

The Bank was organized in 1927 as a national banking
association under the laws of the United States of America and was known as The First National Bank
of Glen Head through June 30, 1978. The Bank has an Investment Management Division that provides
investment management, pension trust, personal trust, estate, and custody services. The Bank organized
a wholly-owned subsidiary, The First of Long Island Agency (the Agency), as a licensed
insurance agency under the laws of the State of New York. In 2003, the Agency once again began selling
mutual funds and annuities to customers of the Bank. Such products are being made available through
a third party provider. The Bank has one other wholly-owned subsidiary, FNY Service Corp., an investment
company, which has one wholly-owned subsidiary, The First of Long Island REIT, Inc.

The Bank has historically served the financial needs
of privately owned businesses, professionals, consumers, public bodies, and other organizations primarily
in Nassau and Suffolk Counties, Long Island. However, the Bank opened three new commercial banking
branches in Manhattan in the second quarter of 2003. The Bank currently has definitive plans for
a new full service branch on the south shore of Long Island, and will continue to evaluate potential
new branch sites.

The principal business of the Bank has historically
consisted of attracting business and consumer checking, money market and savings deposits and investing
those funds in investment securities, commercial and residential mortgage loans, commercial loans,
and home equity loans and lines. The Corporations loan portfolio is currently primarily comprised
of loans to borrowers in Nassau and Suffolk Counties and its real estate loans are principally secured
by properties located in these Counties.

The Banks investment securities portfolio is
comprised of U.S. Treasury securities, U.S. government agency securities (principally modified pass-through,
mortgage-backed securities of Federal agencies), collateralized mortgage obligations, state and municipal
securities and corporate bonds. The Bank also regularly sells federal funds on an overnight basis
to a number of banking institutions.

The Bank offers a variety of deposit products having
a wide range of interest rates and terms. The principal products include checking accounts, money-market-type
accounts, savings accounts, escrow service and IOLA (interest on lawyer) accounts, and time deposit
accounts.

In addition to its loan and deposit products, the Bank
offers other services to its customers including the following:



Account
Reconciliation Services



Night
Depository Services



ATM Banking



Payroll Services



Bank by Mail



Safe Deposit Boxes



Bill Payment Using
PC or Telephone Banking



Securities Transactions



Collection Services



Signature Guarantee
Services



Counter Checks and
Certified Checks



Telephone Banking



Drive-Through Banking



Travelers Checks



Gift Checks and Personal
Money Orders



Trust and Investment
Management Services



Internet PC Banking
For Personal and Commercial Customers



U.S. Savings Bonds



Merchant Credit Card
Depository Services



Wire Transfers and
Foreign Cables



Lock Box Services



Withholding Tax Depository
Services

The Bank has a main office located in Huntington, New
York, eight other full service offices on Long Island (Glen Head, Greenvale, Locust Valley, Northport,
Old Brookville, Rockville Centre, Roslyn Heights, Woodbury), twelve commercial banking offices on
Long Island (Bohemia, Deer Park, two in Farmingdale, Garden City, Great Neck, Hauppauge, Hicksville,
Lake Success, Mineola, New Hyde Park, Valley Stream), and three commercial banking offices in Manhattan.

The Banks revenues are derived principally from interest on loans, interest on investment
securities, service charges and fees on deposit accounts, and income from trust and investment management
services.

The Bank did not commence, abandon, or significantly change any of its lines of business during 2004.

The Bank encounters substantial competition in its
banking business from numerous other banking corporations which have offices located in the communities
served by the Bank. Principal competitors are branches of large banks, such as Citibank, JPMorgan
Chase, and Bank of New York, and various Long Island and Manhattan based banks, mortgage brokers,
brokerage firms and credit unions.